JPMorgan forecasts Bitcoin to outperform stocks, gold

J.P. Morgan Asset Management has projected that Bitcoin could deliver annual compounded returns of 10% over the next 10 to 15 years, exceeding its forecasts for U.S. large-cap stocks, gold and real estate investment trusts. Summary JPMorgan Asset Management has included Bitcoin in its long-term market forecasts for the first time. The firm projects 10% annual compounded Bitcoin returns, above its expectations for U.S. stocks and gold. Bitcoin’s projected 55% annual volatility is far higher than the estimates for traditional investment assets. The bank has left Bitcoin outside its main portfolio allocation models because of unstable market correlations. Bitwise CIO Matt Hougan highlighted the forecast while acknowledging JPMorgan’s warnings about Bitcoin’s risks. According to the firm’s 2027 Long-Term Capital Market Assumptions, Bitcoin has entered its long-term return analysis for the first time, although its volatility and changing relationships with other assets have kept it outside the main portfolio allocation models. The latest assumptions cover more than 200 asset classes and provide projections intended for strategic investment planning. The forecast places Bitcoin’s compoun...